Congress and the Obama administration should move quickly to settle out of court damage claims against the Army Corps of Engineers, in light of a federal judge's ruling that corps mismanagement of the Mississippi River-Gulf Outlet maintenance was responsible for a significant part of the Hurricane Katrina flood damage in the Lower 9th Ward of New Orleans and St. Bernard Parish, attorneys for the winning plaintiffs said Thursday.

Ted Jackson / The Times-PicayuneHundreds of homes fronting the Forty Arpent Canal in Meraux were destroyed or washed away after Hurricane Katrina. Attorneys say the government should settle claims quickly. 12/17/05

Attorneys Joseph Bruno of New Orleans and Pierce O'Donnell of Los Angeles, leaders of the team of lawyers representing plaintiffs in the MR-GO lawsuit, said any settlement also should include compensation for residents, businesses and local governments of other flooded parts of the New Orleans area where U.S. District Judge Stanwood Duval Jr. had ruled last year that the corps was responsible for the failure of levees but was immune from liability under federal law.

The lawyers said they and local elected officials have been invited by U.S. Rep. Charles Melancon, D-Napoleonville, whose district includes St. Bernard, to meet with members of Congress after Thanksgiving to discuss their suggestions for legislation to settle the lawsuits and to "reform" the corps.

O'Donnell said the Obama administration has two choices in responding to Duval's Wednesday ruling.

U.S. District Court Judge Stanwood Duval ruled that the Corps of Engineers' mismanagement of the MR-GO was responsible for a significant part of the Hurricane Katrina flood damage.

"The Justice Department could continue the scorched earth policies of the prior administration and stonewall the people of New Orleans and St. Bernard Parish for years to come," O'Donnell said. "We've been in court for four years, and if the Corps of Engineers exercises its threat, they'll go to the Supreme Court of the United States and literally continue this litigation for years to come.

"Or the new president and his Justice Department can honor (Obama's) campaign promise and his recent promise in New Orleans to do the right thing by the people of New Orleans and St. Bernard Parish," he said. "It's time that we stopped litigating and we started negotiating."

St. Bernard Parish President Craig Taffaro said he would like to see a settlement also include the cost of restoring wetlands and cypress forest destroyed by the MR-GO. He estimated that the parish also has more than $1 billion in claims for damage to parish infrastructure pending before the corps, in addition to the close to $1 billion in aid the parish already has received from the Federal Emergency Management Agency and other agencies.

"The day that the first explosion was delivered to the cypress forest to begin digging and developing the MR-GO was the first day of public outcry that this was going to be the ruination of St. Bernard Parish," Taffaro said. "It's a bittersweet victory in the sense that: yes, we are at the table, yes, we are grateful for the judge's ruling, for the legal team to deliver us to this point. But what a shame that we had to go through such devastation and destruction to get here."

Both attorneys said they also hope to use Duval's harsh criticism of the corps in arguing for congressional changes in the way the agency does business, or even to strip it of its present roles enforcing the federal Clean Water Act, which governs dredging, and in construction of environmental restoration projects.

"The larger message here is that this corps is not the same corps that built the Panama Canal," Bruno said. "This Army is no longer a corps of engineers. They subcontract it out. They're cozy with their contractors. They waste money. They're not interested in the welfare of the people.

St. Bernard Parish President Craig Taffaro calls the ruling 'bittersweet.'

Neither the Justice Department nor the corps would respond to the attorneys' suggestions.

"The department is currently reviewing Judge Duval's decision," Justice Department spokesman Charles Miller said. "We have made no decision as to what the government's next step will be."

"We have nothing to add at this time," said Corps New Orleans District spokesman Ken Holder.

Bruno said that if attorneys are unsuccessful in brokering a settlement, when appeals of the ruling are completed, the attorneys representing the plaintiffs will ask Duval to certify the case as a class action and to issue a judgment against the corps that finds it liable for damages for all claims in the two areas.

"The only thing that will be left is for the individual to come in and prove their very specific damages, how much did the flood damage their home, did the flood cause them loss of life, did the flood cause them personal injury or emotional stress," Bruno said.

The "class" would include only those people, businesses and governmental entities who filed SF Form 95 claims with the Army Corps of Engineers two years ago, involving losses incurred in the Lower 9th Ward and St. Bernard Parish, he said. Homeowners and renters would be covered.

O'Donnell recommended that those who filed claim forms make sure they have the financial records necessary to prove their damages, including receipts for replacement of lost items or reconstruction costs. He expects any damage claims to be reduced by money already received by the claimants from insurance settlements or Road Home grants.

The original plaintiffs in the MR-GO case recognize it could be a long time before the appeals process ends.

"It may take years to get anything monetary, but that's not the important thing," said Lucille Franz, 75, whose two-story home on St. Claude Avenue in the Lower 9th Ward was destroyed. "It's important that they be held accountable for what they've done -- or what they didn't do, let's put it that way."

The home at the intersection of St. Claude and Gordon Street had been in the family of her husband, Anthony, 80, since 1922. He was born in the house seven years later and inherited it when his mother died.

"It hurt, because there was really a sentimental attachment there," Anthony Franz said. "What got me mad was that I've got to go find another place to die. I can't die in the old family mansion."

Duval's decision was hailed by several members of the state's Congressional delegation officials.

"I am hopeful the federal government will work for a quick resolution to this case, so these resilient citizens can close this horrible chapter and move on with their lives," Melancon said.

"I hope that this ruling encourages the corps to reform the way that they do business," said U.S. Sen. David Vitter, R-La. "For the people of greater New Orleans who lost their loved ones and their homes during this horrific storm, this news is too little too late. But perhaps this decision can serve as a warning for the future and as a means to help bring some form of relief to the victims of this storm."

U.S. Sen. Mary Landrieu.said, "In the coming days, I will be working directly with President Obama to ensure that his administration understands the implications of this decision and the immediate need for the government to reach a final resolution for the people of New Orleans and St. Bernard Parish.

"This decision also confirms my belief that we need sweeping change to flood protection, coastal restoration, and water management for our cities, large and small, in Louisiana," she said. "The Corps of Engineers can no longer be relied upon as the lone agency charged with protecting our coastal communities."

Gov. Bobby Jindal said, "This ruling highlights the fact that Hurricane Katrina's damage was exacerbated by the failure of the Corps of Engineers to properly operate and maintain water resources projects in Louisiana. There are very real and human implications of the failure to quickly solve challenges and address vulnerabilities in our hurricane protection system. I hope this decision will serve as a catalyst for the corps, Congress and the administration to aggressively move forward on hurricane protection and coastal restoration efforts in Louisiana."Chris Kirkham contributed to this report. Mark Schleifstein can be reached at mschleifstein@timespicayune.com or 504.826.3327.